It is reported that the biggest private conglomerate in China, Fosun International may spin off and list its mining subsidiary, Hainan Mining on the Shanghai Stock Exchange.

According to the filing, Fosun International had submitted its proposal to the Hong Kong Stock Exchange for the proposed transaction.

Hainan Mining is the largest producer of iron ore in Hainan and has abundant shilu iron deposits and huge reserves of iron ore. The mining company has total iron ore reserves of 466 million tons and recoverable reserves of 270 million tons at present.

The major customers of Hainan Mining include Wuhan Iron and Steel Group, Baoshan Iron and Steel, Beijing Shougang and Nanjing Iron and Steel. It generated revenue of CNY 2.48 billion in 2010.

Hainan Mining completed its share reform in August 2010 with Shanghai Fosun Group obtaining a 60% stake in it. Fosun International had listed a mining company, Zhaojin Mining Industry on the Hong Kong Stock Exchange in 2006.

(Sourced from China Business News)